Australian banks welcome real-time payments service

Banks have responded positively to the Australian Payments Clearing Association's proposal for new real-time payments infrastructure, saying it will lead to more innovation in areas such as mobile payments.

Under the APCA’s real-time payments committee proposal, a new payments clearing infrastructure will be created for Australian banks.

The clearing utility will connect all financial institutions and link to the Reserve Bank of Australia's settlement facilities to enable real-time transfers and permit automated processing of information along with the payment.

The Australian financial services industry is working to have the new infrastructure and consumer convenience service available by December 2016.

According to NAB working capital services executive general manager David Gall, the network wide real-time payments system will be a “catalyst” for increased competition between payment providers and foster greater innovation--in particular, mobile payments.

“Businesses will have access to more timely information, helping them better manage their business and cash flow,” he said in a statement.

“Ultimately it'll provide businesses as well as consumers with a wider range of payment options best suited to their needs."

A CBA spokesperson said it welcomed the introduction of a real time payments hub and a commitment to deliver it by 2016.

“We look forward to further growth in innovative payment devices and channels that our customers have shown their appreciation for,” the spokesperson said in a statement.

A Westpac Group spokesperson said in a statement that the bank fully supports the development of commercially-based, next generation, real-time payments infrastructure in Australia.

Copyright 2016 IDG Communications. ABN 14 001 592 650. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of IDG Communications is prohibited.